“Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution…make your products in the United States instead of China. Start building new plants now,” the POTUS tweeted.
Trump’s comments come after Apple expressed dissatisfaction over his administration’s China tariffs. According to CNBC, the company said that the President’s proposed tariffs would impact various Apple products, such as the Apple Watch, AirPods, HomePod, Mac, Mini, Apple Pencil, and chargers and adapters for a number of gadgets.
While Apple did not offer an estimate of how much Trump’s China tariffs would increase costs of production, the company argued that the tariffs will only hurt American consumers and companies, without curbing China’s technology policies.
“It is difficult to see how tariffs that hurt U.S. companies and U.S. consumers will advance the Government’s objectives with respect to China’s technology policies. We hope, instead, that you will reconsider these measures and work to find other, more effective solutions that leave the U.S. economy and U.S. consumer stronger and healthier than ever before.”
As CNBC noted, Apple CEO Tim Cook had previously brushed off Trump tariffs, claiming to have had conversations with the POTUS, arguing that the tariffs would not hit Apple products.
Cook has, so it seems, changed his mind, and Trump threatened to impose another set of tariffs on top of a proposed $200 billion. Yesterday, as the Guardian reported, Trump said that he wants to impose tariffs on an additional $267 billion in Chinese goods, totaling $467 billion.
Trump hits Apple, acknowledges prices may rise amid trade war https://t.co/wGhVr9AqEG— POLITICO (@politico) September 8, 2018
This would further escalate the trade war Trump is leading against China. But, as the Guardian noted, Trump’s tariffs are not working. While the President often brags about his accomplishments via Twitter, official data shows that China’s trade surplus with the United States is greater than ever.
In August 2018, the surplus was $31,05 billion, up from $28.09 billion in July. China’s trade surplus with the U.S. has, therefore, risen nearly 15 percent from January to August 2018.
Economists and investors have, according to the Guardian, expressed concern over the standoff between the two countries, warning that the trade war could derail the global market and provoke more counter-tariffs to Trump tariffs.
In an interview with Bloomberg, White House economic adviser Larry Kudlow suggested that President Trump would be willing to meet with China’s Xi Jinping, and possibly discuss de-escalating the trade war. The two leaders could reportedly meet as early as this month at the United Nations General Assembly.